Attachment 0002 - PWS 02 Facility Planning.pdf

DRAFT

PWS 2 – FACILITY PLANS, STRATEGIES, AND ANALYSES

1. GENERAL INFORMATION

1.1. INTRODUCTION

1.1.1. The purpose of this PWS is to outline the Operating Contractor’s roll in the development and updating of plans and strategies for overall facility management to include capacity planning, strategic planning, and investment planning. The results of the efforts contained within this PWS will provide planning information for decision makers regarding facility and investment strategies at RFAAP.

1.2. BACKGROUND

1.2.1. Joint Program Executive Office Armaments & Ammunition (JPEO A&A), as executor of Department of Defense’s Single Manager for Conventional Ammunition, is responsible for conventional ammunition production base strategic planning and execution of the Production Base Support (PBS) program.

1.2.2. Potential funding mechanisms for program/project execution:

1.2.2.1. The PBS program provides funding for investment and modernization for industrial base capabilities. The effort under this PWS is for the planning and analyses for PBS projects at RFAAP and to support long term strategic planning at RFAAP. Execution of individual PBS projects are direct funded via separate Statements of Works (SOWs), or in some instances separate support SOWs for the Operating Contractor to support PBS projects performed by others. The PBS program supports three types of projects:

1.2.2.1.1. Provision of Industrial Facilities (PIF). PIF projects may include a new production capability, expansion of current capacity, or modernization of existing facilities to current standards. Modernization efforts should consider improved operating efficiency and reduced operating costs as well as sustainment and readiness of critical capabilities.

Modernization efforts should consider improving operational safety, quality of the product, and the quality of the work environment.

Modernization efforts should consider emerging environmental requirements.

1.2.2.1.2. Layaway of Industrial Facilities (LIF). LIF projects transition industrial facilities or equipment from production status to long-term storage.

LIF projects may also include decontamination, disposal, and demolition of excess Government owned property.

1.2.2.1.3. Maintenance of Inactive Facilities (MIF). MIF projects fund efforts to maintain inactive facilities in a laid-away state, ensuring they are available for future use. MIF projects only apply to facilities approved for long-term storage under the LIF program.

1.2.2.1.4. Other funding sources as identified by the Government.

1.3. SCOPE

1.3.1. Includes the planning and support needed to execute Government funded efforts for all Government property within RFAAP boundaries, the New River Unit (Dublin), and any potential expansion sites.

1.4. APPLICABLE DOCUMENTS OR CITATIONS

1.4.1. Association for the Advancement of Cost Engineering (AACE) International Cost Estimation Classifications (18R-97).

1.4.2. Army Regulation (AR) 210-20 – Real Property Master Planning for Army Installations.

1.4.3. DoD 7000.14-R Financial Management Regulation (Volume 2B, Chapter 4).

1.4.4. DFARS 213.106-2 Evaluation of quotations or offers

1.5. DEFINITIONS

1.5.1. Production Base: The privately-owned and Government-owned industrial production capacity available to manufacture items required by the U.S. Armed Forces. The production base together with the maintenance base comprises the industrial base.

1.5.2. Production Base Support (PBS): funds both modernization and efforts to maintain inactive capabilities and facilities at the AAPs to retain the capability and capacity for future use.

1.5.3. Performance Work Statement (PWS): statement of work for performance-based acquisitions that describes the required results in clear, specific and objective terms with measurable outcomes.

1.5.4. Production Support and Industrial Facilities Cost Analysis (P-25): The P-25 document is used to display costs for each funded production facilities project at all GOGO and GOCO facilities. Shall be developed in accordance with DoD 7000.14-R Financial Management Regulation (Volume 2B, Chapter 4).

1.5.5. Call Letter: The annual call for projects to feed the Program Objective Memorandum (POM) and Ammunition Production Base Support (PBS) Program Build. This annual process determines the PBS budget for each GOCO over a five-year period.

1.5.6. Determination and Findings (D&F): A special form of written approval by an authorized official that is required by statute or regulation as a prerequisite to taking certain contract actions. The "determination" is a conclusion or decision supported by the "findings.’’ The findings are statements of fact or rationale essential to support the determination and must cover each requirement of the statute or regulation.

1.5.7. Statement/Scope of Work (SOW): A document that outlines the specific tasks, deliverables, and timeline for a project.

1.5.8. Rough Order of Magnitude (ROM): The initial estimate of the effort and cost involved in completing a project. The ROM estimation process occurs early in the project life cycle and serves as a guide in the selection of strategies and planning options.

1.5.9. Program Management Review (PMR): A management level review hosted by the Contractor for the purpose of reporting on the status of projects within the PBS program at RFAAP. PMR is a communication and reporting tool that includes project stakeholders and is used to identify problems and develop appropriate follow-up actions as required.

1.5.10. Corrective Action Request (CAR): Is issued to identify and correct instances of the Contractor’s noncompliance with established methods for processing product, controlling quality systems, or violation of contract order requirements.

1.5.11. Major Maintenance: As defined in the RFAAP Maintenance of Facilities PWS.

1.5.12. Armament Retooling and Manufacturing Support (ARMS): Program created by

Congress to encourage the commercial and government use of underutilized property at GOCOs and GOGOs to compensate for reduced production volumes and facility closures that would adversely impact the local economies.

1.5.13. Industrial Preparedness Planning (IPP): Is performed to document production capabilities and capacities, perform production base analyses, assist in development of acquisition strategies, assess risks, and make production base decisions. This PWS is for the Contractor to provide RFAAP production base data for the Government to perform the IPP mission.

2. WORK REQUIREMENTS

2.1. TECHNICAL REQUIREMENTS

2.1.1. Execution Plan

2.1.1.1. The Contractor shall develop and submit annually for review and approval by the Government a PWS 2 Execution Plan (CDRL A02-01).

This plan shall be submitted 30 calendar days prior to the start of each calendar year. The Execution Plan shall include, but not be limited to, the following:

2.1.1.1.1. Introduction and executive summary

2.1.1.1.2. Description of facilities and capabilities (high level)

2.1.1.1.3. Production capacities and constraints

2.1.1.1.4. Modernization strategy

2.1.1.1.5. Future production and facility requirements

2.1.1.1.6. Strategic goals and recommendations

2.1.1.1.7. Description of planning process and prioritization methodology

2.1.1.1.8. Prioritization of projects

2.1.1.1.9. Estimated funding requirements

2.1.1.1.10. Project sequencing and phasing recommendations

2.1.1.1.11. Identify and summarize pre-planning efforts (conceptual designs, studies, charrettes, emerging technology exploration)

2.1.1.1.12. Constraints, risks, past and current issues, expected issues

(including environmental, safety, QWE, maintenance, single point failures, operational availability, quality of product, first pass yield, rework, etc.)

2.1.2. Annual PBS Call Letter Submission

2.1.2.1. The Contractor shall respond to the annual PBS Call Letter and shall fulfill its request and requirements (CDRL A02-02). Independent of the PBS Call Letter, or if it is not received, the Contractor shall submit a package that also meets the requirements in this PWS. Whether or not the PBS Call Letter is received, this submission package shall be considered and referred to as the PBS Call Letter submission. The PBS Call Letter submission shall be provided to the Contractor by the end of May each year or as directed by the annual PBS Call Letter. The PBS Call Letter submission shall include, but not limited to, the following:

2.1.2.2. The Contractor shall submit a package containing the current, new, and emerging PBS RFAAP project requirements in addition to the revalidation of the current PBS RFAAP project requirements.

2.1.2.3. The Contractor shall submit candidate projects (each in P-25 format, see paragraph 2.1.3) that are intended to meet the current, new, and emerging PBS RFAAP project requirements and shall review, revise, revalidate, or propose deletion of all previously submitted P-25s on an annual basis. The rationale for any P-25 revisions or deletions shall be captured in an organized P-25 log, which shall track the history of current and prior P-25s at a high level. The P-25 log shall also track the date and summarize the findings of the annual reviews of the existing P-25s. The review of current P-25s shall occur to determine if the information, assumptions, cost estimates, schedule estimates, are still accurate and revisions shall occur if they are found to be inaccurate. The Contractor shall provide the P-25 Log with the Call Letter submission.

2.1.2.4. The Contractor shall submit a 1-N prioritized list of the proposed candidate projects following the format and scoring criteria provided in the Call Letter or provided separately. The 1-N list shall provide, at a minimum, the projects in order of Contractor determined priority, project title, project number, primary capability or product supported, primary project classification, predecessor and successor projects, estimated cost, recommended fiscal year of execution, and the detailed scoring results. The Contractor shall also identify projects that can have reduced proposal preparation timelines (60-90 days), to possibly expedite contract awards if additional funding becomes available. The Contractor’s Call Letter submission will be used as a basis for project programming for the next Army budget request, based on the priority and the availability of funds. The next Army budget request is the Government Fiscal Year three years into the future from the current Government Fiscal Year and includes a total of five consecutive years.

Any new or existing requirements that the Contractor deems critical to execute sooner than the next Army budget cycle shall be provided with strong justification. If requested by the Government, the Contractor shall assist the Government in reprioritizing projects when an out of budget cycle project request occurs. Projects requested sooner than the next Army budget cycle will likely not be resourced.

2.1.2.5. The Contractor shall prepare briefing charts and hold an annual PBS Call Letter Review in June of each year, or as directed, which shall mirror and summarize the overall strategies and proposed projects contained in the PBS Call Letter submission. Each of the proposed candidate projects shall have a quad chart summarizing key information from the project P-25. The briefing charts and support documentation shall be provided 15 working days prior to the PBS Call Letter Review.

2.1.2.6. Information required for modernization planning, strategy development, and P-25 evaluation, shall be provided by the Contractor as requested and may include, but not be limited to, actual production records by process facility, process cycle times, process yields, quality metrics, and energy consumption records.

2.1.3. Annual P-25 Submissions

2.1.3.1. The Contractor shall submit 10 projects annually (CDRL A02-03). The

Contractor shall submit a table to the Government for concurrence within

45 days of the beginning of the calendar year (CY) identifying the P-25’s to be submitted during that CY. The submitted table shall contain the project name, the level of estimating required, and by what date the Contractor shall submit each P-25. Each P-25 shall meet the following requirements:

2.1.3.2. A P-25 is a project planning document including, but not limited to title, objective, background, need, requirement, planned work to be performed, benefits, justification (including an analysis and supporting data), project prioritization, investment cost estimates, schedule estimates, schedule dependencies (to include any predecessor and successor relationships), risk analysis, impacts (operational continuity, operational availability, safety, environmental, quality of product, quality work environment, energy consumption), and economic analyses (including savings, cost avoidance, impact to maintenance costs, impact to production and operational costs, return on investment) for PIF, LIF, and MIF projects.

2.1.3.3. Each P-25 shall address the facility project requirements, including but not limited to, performance, operational availability, environmental, safety, and other project requirements, projecting project requirements outward by a minimum of eight years.

2.1.3.4. In the project objective and justification sections, issues such as operational continuity to assure production, operational availability, environmental impacts and issues, cost avoidances and savings, safety, quality of product, quality work environment, strategic importance, and security shall be addressed.

2.1.3.5. Each P-25 shall provide the assumptions made overall and for the cost and schedule estimates.

2.1.3.6. Each P-25 shall provide any conceptual designs and major equipment assumed. The Contractor shall provide any analysis of alternatives conducted, to include but not be limited to, potential RFAAP location(s) considered.

2.1.3.7. The Contractor shall provide a robust cost estimating capability for the various types of modernization projects. While the P-25s shall only provide the high-level details for each project cost estimate, the Contractor shall provide the detailed supporting data for each project cost estimate with each P-25 submission.

2.1.3.8. The Contractor shall identify and update the target year of execution for each P-25 with input from the Government. The Contractor shall review each P-25 annually and shall revise, revalidate, and/or propose deletion of each P-25 as required and in accordance with (IAW) the requirements in the PWS. Included in the annual review, the Contractor shall review the cost and schedule estimates in each P-25, considering the latest information available, past assumptions, marked conditions, and other factors, and as the projects get closer to the target year of execution, the cost and schedule estimates shall become more refined, detailed, and accurate. For P-25s with a target year of execution in the near term (0-3 years out into the future), the cost estimates shall be at an acceptable level and maturity for possible budgeting [Class 3 IAW Association for the Advancement of Cost Engineering (AACE) International Cost Estimation Classifications (18R-97)]. For P-25s with a target year of execution in the midterm (4-7 years out into the future), the cost estimate shall be at an acceptable level and maturity for planning [Class 4 IAW AACE International Cost Estimation Classifications (18R-97)]. For P-25s with a target year of execution in the long term (8-15+ years out into the future), the cost estimate shall be at an acceptable level and maturity for planning [Class 5 IAW AACE International Cost Estimation Classifications (18R-97)]. With any schedule adjustments, the Contractor shall review, and update as required, the related strategy overall and as it relates to project sequencing. With Modernization design projects that could be executed, the Contractor may be required under those separate statements of work to provide cost estimates, possibly at different stages of the design. The Contractor is requested to have a standardized cost estimate format and structure whenever cost estimates are provided.

2.1.3.9. The Contractor shall submit a quarterly P-25 plan for Government review and approval (CDRL A02-04). As part of the P-25 plan submittal, the Contractor shall provide an updated P-25 log summarizing the P-25’s to be submitted each calendar year, the respective status of each P-25, and the schedule of submission.

2.1.4. Pre-Contract Actions

2.1.4.1. For projects anticipated to be executed in the near term (0-3 years), the

Contractor shall perform pre-contract actions for a maximum of four projects annually. These tasks include but are not limited to, supporting Determination and Findings (D&Fs), supporting SOW development and review, and any pre-design activities required by the Contractor to support these activities. Support to the D&Fs process may include development of Rough Order of Magnitude (ROM) cost estimates, including detailed basis of estimate documents. Final or full design of the proposed efforts shall be addressed as a proposed project on a case-by-case basis. Responses to Request for Proposals and proposal preparation efforts shall not be directly funded under this PWS. These efforts shall also feed the call letter project submissions revisions (paragraph 2.1.2).

2.1.5. Program Management Review

2.1.5.1. The Contractor shall support/host periodic onsite program management reviews (PMR) at the request of JPEO AA, RFAAP Government Staff, or JMC (minimum of three times per year) (CDRL A02-05).

2.1.5.2. The draft agenda shall be provided to the Government one month prior to the scheduled PMR.

2.1.5.3. Briefing charts shall be provided five working days prior to the scheduled PMR review.

2.1.5.4. The PMRs shall include, at a minimum, the following agenda items:

2.1.5.4.1. Review previous PMR action items

2.1.5.4.2. Contractor Organization and staffing updates

2.1.5.4.3. Contract updates

2.1.5.4.3.1. General contractual performance to include open

Corrective Action Requests (CARs)

2.1.5.4.4. Production updates

2.1.5.4.4.1. Production activity (all orders), status, issues, contractual performance, and projected workload/orders (all orders)

2.1.5.4.4.2. Quality and Continuous Improvement Updates (foreign object debris occurrences, Product Quality Deficiency Reports, etc.)

2.1.5.4.4.3. Key materials risk assessment and diminishing

manufacturing sources and material shortages

2.1.5.4.5. PWS performance updates

2.1.5.4.5.1. Safety, health, environment performance and updates, to include planned and occurring environmental permit efforts

2.1.5.4.5.2. Maintenance key performance indicator (KPI) updates

2.1.5.4.5.3. Utilities performance against projections and KPIs

2.1.5.4.5.4. Reporting of performance and financial spending on all remaining PWS’s

2.1.5.4.5.5. PWS project updates: Facilities update including current and proposed Major Maintenance and Armament Retooling and Manufacturing Support (ARMS) projects

2.1.5.4.6. PBS funded project updates

2.1.5.4.6.1. Modernization planning and execution improvements

2.1.5.4.6.2. Modernization proposals being developed

2.1.5.4.6.3. Modernization planning update including current and proposed modernization project requirements (P-25s)

2.1.5.4.6.4. Execution updates on funded modernization projects

2.1.5.4.7. Other topics as requested

2.1.5.4.8. Review of captured action items

2.1.5.4.9. Government tour of facilities (provided by the Contractor)

2.1.5.5. After each PMR, updated briefing charts shall be provided by the

Contractor five working days after the PMR. After each PMR, the updated action item list shall be provided five working days after the PMR, with status updates provided by the fifth of each month, beginning the month following the initial submission. The Government will determine if actions can be considered closed.

2.1.6. Industrial Preparedness Planning (IPP)

2.1.6.1. IPP is performed to document production capabilities and capacities, perform production base analyses, assist in developing acquisition strategies, and production base decisions.

2.1.6.2. The Contractor shall review industrial base capacity inquiries on an informal, as needed basis (CDRL A02-06). Typically, comprehensive reviews and validations will be three times per year. Recurring information for verifications will include, but is not limited to:

2.1.6.2.1. Building and equipment utilization

2.1.6.2.2. Building and equipment capacities

2.1.6.2.3. Single point failure areas

2.1.6.2.4. Identification of bottle necks and time and cost to resolve

2.1.6.2.5. Critical skills, critical equipment, critical spare parts

2.1.6.2.6. Identify availability and capability of workforce

2.1.6.2.7. Critical materials and ingredients

2.1.6.2.8. Process support to include software and hardware

2.1.6.2.9. Infrastructure support

2.1.7. Project Requirements Database

2.1.7.1. The Contractor shall maintain a system for consolidating, assessing, and prioritizing new project and requirement submissions (CDRL A02-07).

The Contractor shall maintain this database of projects and requirements. This database shall be shared with the Government upon request. The Contractor shall hold meetings, biweekly at a minimum, to review validity of the requirements and prioritize submissions. A Local

Army Staff Government representative shall be invited to the meeting as a key stakeholder. If a project is validated during the meeting, a funding source shall be identified, and the funding source program manager shall develop a high-level rough order of magnitude (ROM) for the project.

2.1.7.2. The Contractor shall submit an export of the database to the Government by the 5th of each month inclusive of all projects added to the database and each project’s respective status.

2.1.7.3. The Contractor shall submit biannually (every six months) an expanded database export that includes the above requirements in section 2.1.7.2, as well as the approved funding source and status of the project within the respective funding source prioritization.

2.1.8. Planning

2.1.8.1. The Contractor shall perform short- and long-range planning with its execution of the P-25 process for future development of infrastructure of the installation in accordance with AR 210-20.

2.1.9. Government Funded Efforts

2.1.9.1. The Contractor shall support Government contracted third party efforts at

RFAAP including design, demolition, and construction projects. Support for Government contracted third party efforts include, but are not limited to, providing facility information, procedures, processes, coordination onsite among stakeholders, issuance of RFAAP specific permits, and providing drawings, maps, or other information maintained in document controls, as requested by the third-party contractors and other Government agencies.

2.1.9.2. The Contractor shall support Army studies, surveys, or initiatives. This includes studies in which consumption and cost data is necessary to identify cost saving opportunities for the Government. These studies, surveys, or initiatives may include efforts funded via the Operating Contractor or efforts contracted through a third party.

2.1.9.3. Support personnel for coordination of Government funded efforts includes, but is not limited to, operating contractor safety, security, environmental, production, ballistics, facilities, engineering, project management, and any other staff that are necessary for the support and coordination required for the success of the effort.

2.1.9.4. If the funding is not utilized in the identified CY, it will be rolled over and used in the following CY. Any funding remaining at the end of the contract term, will be deobligated back to the Government.

2.2. DELIVERABLES

2.2.1. A02-01 PWS2 Execution Plan shall be submitted 30 days prior to the start of the calendar year in accordance with paragraph 2.1.1.

2.2.2. A02-02 PBS Call Letter shall be submitted in June, or as specified in the Call Letter Memorandum in accordance with paragraph 2.1.2.

2.2.3. A02-03 Ten projects shall be submitted annually in accordance with paragraph 2.1.3.

2.2.4. A02-04 P25 Plan shall be submitted quarterly in accordance with paragraph 2.1.3.9.

2.2.5. A02-05 Program Management Reviews (PMR) shall occur, at a minimum, three times per year in accordance with paragraph 2.1.5.

2.2.5.1. PMR Agenda shall be submitted one month prior to each PMR in accordance with paragraph 2.1.5.2.

2.2.5.2. PMR briefing charts shall be submitted five working days prior to each PMR in accordance with paragraph 2.1.5.3.

2.2.5.3. PMR final briefing charts shall be submitted five working days after each PMR in accordance with paragraph 2.1.5.5.

2.2.5.4. PMR action items list shall be submitted five working days after each PMR and on the 5th of each month following the PMR until all actions are closed in accordance with paragraph 2.1.5.5.

2.2.6. A02-06 Industrial Preparedness Planning (IPP) shall be performed as requested in accordance with paragraph 2.1.6.

2.2.7. A02-07 Project Requirements Database monthly submission by the 5th of each month in accordance with paragraph 2.1.7.2 and semiannual submission by the 5th of each applicable month in accordance with paragraph 2.1.7.3.

In addition to any KPIs specified in this PWS, the Contractor shall identify a minimum of three

(3) KPIs that measure performance, effectiveness, timeliness, and/or efficiency of Facility Planning efforts at RFAAP. These additional KPIs shall be included in a [INSERT PWS TITLE] KPI report (INSERT CDRL). The initial submission shall be submitted to the Government for approval 30 calendar days after to transitioning as the Operating Contractor and monthly thereafter.

The Contractor shall define the calculation method for each KPI and any sub-KPIs in the first submission of the [INSERT PWS TITLE] KPI report ACA for Government approval.

The [INSERT PWS TITLE] KPI Report shall provide targets for improvement for each KPI, with justification as to why the target was determined. Targets may be based on industry standards or baseline data acquired in the first quarter of performance tracking. Targets may be adjusted on an annual basis or sooner, if necessary, with Government approval.

When KPIs are trending negative or consistently below target (for at least three consecutive months), the Contractor shall provide a plan or strategy adjustment to work back towards the target. The plan and/or strategy shall include details on actions to be performed, timeline for improvement and personnel responsible to achieve the target.

While the government reserves the right to assess contractor compliance with specific requirements of this PWS, the primary measure of the contractor’s success in performing the PWS will be determined by KPI goal attainment.